ATF exempted from Customs Duty – exemption to ferro-molybdenum and ferro-vanadium withdrawn
The 5% Customs Duty on Aviation Turbine Fuel has been withdrawn. Many newspapers reported that the Government has given a big benefit by abolishing the duty – but the fact is ATF is not imported. What difference does it make if the duty on a product that is not imported is reduced? The fact is the price of domestically produced ATF is based on import parity price factoring in the basic customs duty. The exemption would result in lowering of the base price of ATF and, consequently, lowering the incidence of excise duty and VAT, giving substantial relief to the aviation sector.
The Nil rate of duty available to ferro-molybdenum and ferro-vanadium is withdrawn and they will now attract 5% import duty.
Notification NO. Dated: October 31, 2008